Automated Procrement: Automated Procurement Process
Evaluated Receipt Settlement (ERS) in SAP MM: Evaluated Receipt Settlement (ERS) is the procedure for setting the Goods receipts automatically.ERS process is used for automatically settling credits to a Vendor by automatically creating an invoice according to the Goods receipt quantity.In other words we agree with the vendor that this does not need to create an invoice for ordering transaction.During ERS process the SAP system automatically creates the invoice for the purchase order and goods receipt.Vendor is notified by a credit memo of payment and there is no requirement for vendor's invoice.
Evaluated Receipt Settlement (ERS) has the following advantages:
- Time saving as purchasing transactions are done very fast.
- There are no price and quantity variances in invoice verification.
Settings for ERS Procedure: For settling goods receipt automatically for vendor we have to make the following settings:
- Vendor Master Record: You must set the indicator for ERS and for GR-based invoice verification.
- Purchasing Inforecord: Make sure that No ERS indicator is not checked.The indicator GR-Based IV defaults from the vendor master.
- Purchase Order: You also have to set the indicator for ERS and GR-based invoice verification in Purchase order item.The price in the PO must not be estimated.Payment condition key ,the base date of which is set in customizing,must be entered in the header data for the PO.You must maintain a tax code for the item.
- Goods Receipt: You must enter the goods receipt with reference to the PO.